Canada Inflation Rate1915-2020 Data | 2021-2023 Forecast | Calendar | Historical

Annual inflation rate in Canada slowed to 0.7% in December of 2020 from 1% in November, which was the highest since February of 2020. Figures came below forecasts of 1%, mainly due to lower air transportation prices (-14.5%) amid falling demand. Also, food inflation slowed to 1.1%, the lowest reading since May of 2018, amid favourable weather conditions in growing regions in the United States and Mexico which contributed to the increased supply of fresh fruit and vegetables. On the other hand, upward pressure came from higher shelter prices (1.6%). Excluding gasoline, inflation was 1%, down from 1.3% in November.

Canada's consumer price inflation rate picked up to 1.0 percent year-on-year in November 2020, the highest since last February and above market expectations of 0.8 percent. Upward pressure came from shelter (1.9 percent vs 1.8 percent) due to rent prices, food (1.9 percent vs 2.3 percent), household operations, furnishings and equipment (0.6 percent vs 0.4 percent), and recreation, education and reading (1.0 percent vs -1.3 percent). On the other hand, transportation cost declined 0.1 percent for a second straight month, due to an 11.9 percent slump in gasoline prices amid subdued domestic and international demand. Excluding gasoline, the CPI rose 1.3 percent in November, up from a 1.0 percent increase in October. On a monthly basis, consumer prices edged up 0.1 percent in November, easing from a 0.4 percent gain in October and compared with market expectations of a flat reading.

The annual inflation rate in Canada rose to 0.7 percent in October 2020 from 0.5 percent in the previous month and above market expectations of 0.4 percent. Still, inflation remains well below 2.2 percent in February, before the coronavirus pandemic. Prices advanced further for food (2.3% vs 1.6% in September), namely fresh vegetables (+9.5 percent); shelter (1.8% vs 1.7%); health & personal care (1.8% vs 1.6%); and household operations, furnishings and equipment (0.4% vs 0.3%). Also, inflation was steady for alcoholic beverages, tobacco products & recreational cannabis (at 0.7%) while cost of clothing & footwear fell less (-4% vs -4.1%). In contrast, cost of transport dropped (-0.1% vs 0.1%); and prices of recreation, education & reading declined at a faster pace (-1.3% vs -1.2%). On a monthly basis, consumer prices went up 0.4 percent, rebounding from a 0.1 percent fall in the prior month and above forecasts of a 0.2 percent gain.

The annual inflation rate in Canada rose to 0.5 percent in September 2020 from 0.1 percent in the previous month and above market expectations of 0.4 percent. Still, inflation remains well below 2.2 percent in February, before the coronavirus pandemic. Cost of transport rebounded (0.1% vs -1.3% in August), and prices increased further for shelter (1.7 % vs 1.5%); health & personal care (1.6% vs 1.4%); and alcoholic beverages, tobacco products & recreational cannabis (0.7% vs 0.4%). In addition, cost of recreation, education & reading fell less (-1.2% vs -3.1%). On the other hand, prices eased for food (1.6% vs 1.8%); and household operations, furnishings and equipment (0.3% vs 0.4%). Also, cost of clothing & footwear dropped at a faster pace (-4.1% vs -1.3%), as demand for back-to-school clothing was impacted by factors related to COVID-19. On a monthly basis, consumer prices declined 0.1 percent, the same as in the prior month and matching forecasts.